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Chinese Dongjin Group will invest $15 million in a dry-battery manufacturing facility at Allama Iqbal Industrial City near Faisalabad, marking another CPEC Phase 2 industrial-relocation deal as Pakistan's storage demand accelerates with the solar boom.
Power Minister Awais Leghari confirmed that negotiations with CPEC-linked Chinese power producers have produced no meaningful concessions despite ongoing efforts at debt-reprofiling. Pakistan has secured over Rs. 3.5 trillion in savings by renegotiating deals with 29 other private and state-owned power plants, but CPEC's government-to-government framework makes similar concessions far more diplomatically complex.
Pakistan has tabled the Wapda Security Force Act, 2026 in parliament to create a dedicated force guarding hydel infrastructure and workers at major water-sector sites. The bill follows two deadly terrorist attacks on the over $6 billion Dasu Hydropower Project that suspended construction for more than a year.
CPEC Phase 2 formally launches in 2026 with a new Green Development Corridor alongside Growth, Innovation, Livelihood, and Regional Openness corridors — plus a proposed Knowledge Corridor. Phase 1 delivered 38 Early Harvest Projects worth USD 25bn+; Phase 2 reorients toward renewables, storage, and grid modernisation.
Pakistan's foreign direct investment fell 31 per cent to $1.409 billion in the first ten months of FY2026, with April recording a particularly weak $54 million net inflow. The power sector was the top destination for foreign capital at $785.6 million, outpacing all other industries despite ongoing tariff and capacity payment pressures.
Pakistan's power sector pulled in USD 785.6m in foreign direct investment during the first 10 months of FY26 — the largest sectoral inflow, even as overall FDI fell 31% year-on-year.